Yvonne Dockery has pleaded not guilty to the charge. If convicted, she could face up to 20 years in prison.
A grand jury indicted Dockery earlier this month, and the indictment was unsealed last week.
According to the indictment, Dockery is accused of making phony invoices from Dub City Auto Sales in Texarkana and mailing them to state auditors in 2007. The indictment says Dub City was not in business when the invoices were made.
Dockery was sentenced to probation after pleading guilty in October to receiving payroll advances she wasn't entitled to get. As part of a plea agreement she resigned as mayor of Garland City.
(Copyright 2009 by The Associated Press. All Rights Reserved.)